LRB-4789/1
MDK:kmg:km
1997 - 1998 LEGISLATURE
March 19, 1998 - Introduced by Senator Burke, cosponsored by Representative R.
Potter. Referred to Committee on Agriculture and Environmental Resources.
SB517,1,11
1An Act to amend 196.374 (1); and
to create 15.07 (1) (a) 7., 15.07 (1) (d), 15.792,
220.155 (1m), 25.17 (1) (kx), 25.96, 196.374 (4), 196.378 and 196.96 of the
3statutes;
relating to: establishing programs for low-income energy
4assistance, improving energy conservation and efficiency markets and
5encouraging the development and use of renewable resources, creating a public
6benefits and energy assistance board, establishing a public benefits and energy
7assistance fund, requiring electric utilities and retail cooperatives to charge
8access fees to customers and members, imposing requirements on the use of
9renewable resources by electric and gas utilities and cooperatives, requiring the
10exercise of rule-making authority, making appropriations and providing a
11penalty.
Analysis by the Legislative Reference Bureau
This bill creates a public benefits and energy assistance board (board), which
is required to establish and administer programs for providing energy assistance to
low-income households and conservation and efficiency services to eligible
recipients and for encouraging the development and use of renewable energy
resources. The bill also imposes certain requirements on the generation of electricity
from renewable energy resources by public utilities and retail cooperative
associations.
Public benefits and energy assistance board
The board, which is attached to the public service commission (PSC), is required
to establish programs for each of the following: 1) assisting low-income households
with weatherization and energy conservation services and payment of energy bills
(low-income assistance programs); 2) providing energy conservation and efficiency
services to eligible recipients (conservation programs); and 3) encouraging the
development and use of renewable energy resources (renewables programs). The
board must hold a hearing before establishing the programs. Interested persons,
including members of the public, may intervene in a hearing and, under certain
circumstances, receive compensation from the PSC for the reasonable costs of
intervention.
The bill requires the division of housing in DOA to contract with certain
nonprofit or governmental entities for the administration of the low-income
assistance programs. The board may contract with the same types of entities for the
administration of the conservation and renewables programs. Under the
low-income assistance programs, in each fiscal year, no less than the difference
between $50,000,000 and the amount of funding received by the state under certain
federal low-income assistance and weatherization programs (federal programs)
must be used for purposes other than paying energy bills. The bill also specifies the
minimum amounts that must be used for certain purposes under the conservation
and renewables programs.
The programs established by the board are funded by an access fee that the
board collects from nonmunicipal electric public utilities, which must charge the
access fees to their customers. Municipal electric public utilities and retail electric
cooperatives (municipal utilities and cooperatives) are also required to charge an
access fee to their customers or members. Every 3 years, a municipal utility or
cooperative may elect to contribute all or a specified portion of the access fees to the
board for the programs established by the board. A municipal utility or cooperative
that does not elect to contribute all of the access fees to the board must spend
specified portions of the access fees on its own "commitment to community
programs", which are defined as low-income assistance programs, energy
conservation programs and programs for promoting the welfare of communities that
include the municipal utility's or cooperative's customers or members.
The bill directs the board to determine the amount of an access fee that must
be charged by nonmunicipal public utilities, municipal utilities and cooperatives.
Each municipal utility and cooperative must charge an access fee that is sufficient
for the utility or cooperative to collect an annual average of $13.16 per meter for each
customer or member. However, for the period ending on June 30, 2008, the amount
of the access fee paid by an individual customer or member may not exceed 3% of the
total of every other charge that is billed to the customer or member during that
period.
For nonmunicipal utilities, the board must determine the amount of the access
fee as follows. In fiscal year 1998-99, a portion of the access fee must be in an amount
that is sufficient for the board to collect from the nonmunicipal electric utilities the
amount that results from subtracting the sum of the following from $105,000,000:
1) the amount received by the state under the federal programs; and 2) 50% of the
access fees charged by municipal utilities and cooperatives. For fiscal years after
1998-99, the amount is determined by subtracting the same amounts from an
amount of low-income need that is determined by the board. The remaining portion
of the access fee must be sufficient for the board to collect from nonmunicipal utilities
the amount that results from subtracting the sum of the following from
$112,000,000: 1) the amount of funding received under the federal programs; and 2)
20% of the access fees charged by municipal utilities and cooperatives. After fiscal
year 2000-01, the board may reduce the amount that must be collected from the
remaining portion of the access fee if the board discontinues or reduces any of the
conservation or renewables programs. The total access fee paid by a customer of a
nonmunicipal utility is subject to the same 3% limit that applies to an access fee paid
by a customer or member of a municipal utility or cooperative.
The bill also requires certain electric utilities to spend a portion of the access
fees on energy conservation programs, rather than paying the entire amount to the
board. Under current law, certain electric utilities are required to spend at least 0.5%
of their annual operating revenues on energy conservation programs. The bill
requires instead that, through fiscal year 2001-02, such electric utilities must spend
a specified portion of the access fees on energy conservation programs. After fiscal
year 2001-02, the electric utilities are not required to spend a portion of the access
fees on energy conservation programs, but must pay the entire amount to the board.
The bill imposes other requirements on the board's programs and the
commitment to community programs, including the following:
1. The bill requires public utilities to allow electric customers to make
contributions to the board's programs or the commitment to community programs.
2. For purposes of determining whether a municipal utility or cooperative has
spent a required amount on a commitment to community program, the bill allows a
municipal utility or cooperative to receive credit for any spending by its wholesale
electric supplier on the supplier's own commitment to community programs.
3. The bill imposes certain reporting requirements on municipal utilities and
cooperatives that spend access fees on commitment to community programs.
Renewable energy resources
Under this bill, a certain percentage of the electricity generated by a public
utility or retail cooperative association must be generated from renewable energy
resources. The percentage is calculated on the basis of a public utility's or retail
cooperative association's "system peak load share", which is defined as the amount
of electricity that the public utility or retail cooperative association delivered to its
customers or members at that time during the summer of 1996 that the maximum
amount of electricity was delivered to all customers and members of all public
utilities and retail cooperative associations. The following percentages of a public
utility's or retail cooperative association's system peak load share must be generated
from renewable resources: 1% by December 31, 2000; 1.5% by December 31, 2002; 2%
by December 31, 2004; 2.5% by December 31, 2006; 3% by December 31, 2008; and
4% by December 31, 2010.
The bill allows a municipal public utility or retail cooperative association to
receive a credit for the amount of electricity generated from renewable resources by
its wholesale supplier. In addition, the bill allows public utilities and retail
cooperative associations to purchase credits from other public utilities and retail
cooperative associations that generate electricity from renewable resources in excess
of the required percentages of system peak load share. A public utility or retail
cooperative association that purchases such a credit may use the credit for purposes
of determining whether it satisfies a required percentage. The PSC must promulgate
rules establishing requirements and procedures for sales of such credits.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB517, s. 1
1Section
1. 15.07 (1) (a) 7. of the statutes is created to read:
SB517,4,42
15.07
(1) (a) 7. Members of the public benefits and energy assistance board
3appointed under s. 15.792 (1) (b) or (c) shall be appointed as provided in s. 15.792 (1)
4(b) or (c) without senate confirmation.
SB517, s. 2
5Section
2. 15.07 (1) (d) of the statutes is created to read:
SB517,4,86
15.07
(1) (d) Except as provided in s. 15.792 (1) (b) 5. or 8. or (c), no member
7appointed to the public benefits and energy assistance board may be an employe of
8a utility, as defined in 196.374 (1).
SB517, s. 3
9Section
3. 15.792 of the statutes is created to read:
SB517,4,11
1015.792 Same; attached board. Public benefits and energy assistance
11board. (1) (a) In this subsection:
SB517,4,1212
1. "Electric utility" has the meaning given in s. 196.96 (1) (f).
SB517,4,1313
2. "Low-income household" has the meaning given in s. 196.96 (1) (L).
SB517,4,1414
3. "Municipal utility" has the meaning given in s. 196.96 (1) (p).
SB517,5,1
14. "Renewable resource" has the meaning given in s. 196.378 (1) (g).
SB517,5,22
5. "Retail cooperative" has the meaning given in s. 196.96 (1) (r).
SB517,5,33
6. "Small business" has the meaning given in s. 16.75 (4) (c).
SB517,5,54
7. "Small business representative" means a director, manager, member, officer,
5owner or partner of a small business.
SB517,5,86
(b) There is created a public benefits and energy assistance board that is
7attached to the public service commission under s. 15.03. The board shall consist of
8the following members appointed for 3-year terms:
SB517,5,109
1. One member appointed by the governor who is a member of a low-income
10household or who represents a low-income household advocacy group.
SB517,5,1311
2. One member appointed by the president of the senate who is a residential
12electric utility customer or who represents a residential electric utility customer
13advocacy group.
SB517,5,1514
3. One member appointed by the governor who is a small business
15representative or who represents a small business advocacy group.
SB517,5,1716
4. One member appointed by the president of the senate who represents an
17environmental or renewable resource advocacy group.
SB517,5,2018
5. One member appointed by the president of the senate who represents of a
19municipal utility or retail cooperative or municipal utility or retail cooperative
20advocacy group.
SB517,5,2221
6. One member appointed by the speaker of the assembly who is a member of
22a low-income household or who represents a low-income household advocacy group.
SB517,5,2423
7. One member appointed by the speaker of the assembly who represents an
24environmental or renewable resource advocacy group.
SB517,6,2
18. One member appointed by the speaker of the assembly who represents an
2electric utility or electric utility advocacy group.
SB517,6,43
9. One member appointed by the chairperson of the public service commission
4to represent the public service commission.
SB517,6,65
10. One member appointed by the secretary of natural resources to represent
6the department of natural resources.
SB517,6,87
11. One member appointed by the administrator of the division of housing in
8the department of administration to represent the division of housing.
SB517,6,179
(c) 1. a. Notwithstanding par. (b) (intro.) and 5., if fewer than one-third of the
10municipal utilities and retail cooperatives doing business in this state notify the
11board under s. 196.96 (5) (b) 1. that they have elected not to contribute to any of the
12programs established under s. 196.96 (2) (a) or (b), the president of the senate shall
13appoint a representative of an electric utility or electric utility advocacy group to
14succeed the member appointed under par. (b) 5. and the member appointed under
15par. (b) 5. shall vacate his or her membership at the time that the member is
16appointed under this subd. 1. a. A member appointed under this subd. 1. a. shall
17serve on the board until a member is appointed under subd. 2.
SB517,6,2318
b. If one-third or more of the municipal utilities and retail cooperatives doing
19business in this state notify the board under s. 196.96 (5) (b) 1. that they have elected
20to contribute to any of the programs established under s. 196.96 (2) (a) or (b), the
21member appointed under par. (b) 5. shall serve for a term expiring on the first day
22of the 48th month beginning after the effective date of this subd. 1. b. .... [revisor
23inserts date].
SB517,7,424
2. a. If one-third or more of the municipal utilities and retail cooperatives doing
25business in this state notify the board under s. 196.96 (5) (b) 2. that they have elected
1to contribute to any of the programs established under s. 196.96 (2) (a) or (b), the
2president of the senate shall appoint one member to the board who is a
3representative of a municipal utility or retail cooperative or municipal utility or
4retail cooperative advocacy group for a 3-year term.
SB517,7,105
b. Notwithstanding par. (b) (intro.) or 5., if fewer than one-third of the
6municipal utilities and retail cooperatives doing business in this state notify the
7board under s. 196.96 (5) (b) 2. that they have elected not to contribute to any of the
8programs established under s. 196.96 (2) (a) or (b), the president of the senate shall
9appoint a member to the board who is a representative of an electric utility or electric
10utility advocacy group for a 3-year term.
SB517, s. 4
11Section
4. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
12the following amounts for the purposes indicated:
-
See PDF for table ![PDF](https://docs.legis.wisconsin.gov/assets/image/file_acrobat.gif)
SB517, s. 5
13Section
5. 20.155 (1m) of the statutes is created to read:
SB517,7,1714
20.155
(1m) Public benefits and energy assistance board. (q)
General
15program operations. From the public benefits and energy assistance fund, a sum
16sufficient for general program operations of the public benefits and energy
17assistance board.
SB517,7,2018
(r)
Grants. From the public benefits and energy assistance fund, a sum
19sufficient for low-income assistance grants under s. 196.96 (2) (a) and energy
20conservation and efficiency and renewable resource grants under s. 196.96 (2) (b).
SB517,8,3
1(s)
Compensation of intervenors. From the public benefits and energy
2assistance fund, the amounts in the schedule for compensating persons who
3intervene in hearings under the rules promulgated under s. 196.96 (2) (e) 3.
SB517, s. 6
4Section
6. 25.17 (1) (kx) of the statutes is created to read:
SB517,8,55
25.17
(1) (kx) Public benefits and energy assistance fund (s. 25.96);
SB517, s. 7
6Section
7. 25.96 of the statutes is created to read:
SB517,8,10
725.96 Public benefits and energy assistance fund. There is established
8a separate nonlapsible trust fund designated as the public benefits and energy
9assistance fund, consisting of the access fees received under s. 196.96 (4) (a) and (5)
10(c) and (d) and contributions received under s. 196.96 (2) (f) and (g).
SB517, s. 8
11Section
8. 196.374 (1) of the statutes is amended to read:
SB517,8,1912
196.374
(1) In this section
, "utility" means a class A gas or electric utility, as
13defined by the commission. Every utility shall spend
annually at least 0.5% of its
14total annual operating revenues the amount specified in s. 196.96 (4) (d) 1. on
15programs designed to promote and accomplish energy conservation.
The commission
16may require a utility to spend annually, for the purpose of promoting and
17accomplishing energy conservation, an amount which is more or less than 0.5% of its
18annual operating revenues if, after notice and hearing, the commission finds that the
19expenditure of such amount is in the public interest.
SB517, s. 9
20Section
9. 196.374 (4) of the statutes is created to read:
SB517,8,2121
196.374
(4) This section does not apply after June 30, 2002.
SB517, s. 10
22Section
10. 196.378 of the statutes is created to read:
SB517,8,23
23196.378 Renewable resources. (1) Definitions. In this section:
SB517,9,224
(a) "Biomass" means a resource that generates energy from wood or plant
25material or residue, biological waste, crops grown for use as a resource or landfill
1gases. "Biomass" does not include garbage, as defined in s. 289.01 (9), or industrial,
2commercial or household waste.
SB517,9,43
(b) "Capacity" means the amount of electricity that an electric or gas provider
4is capable of delivering to its customers or members at a specified time.
SB517,9,65
(c) "Conventional resource" means a resource that generates energy from coal,
6oil, nuclear power or natural gas, except for natural gas used in a fuel cell.
SB517,9,87
(d) "Electric or gas provider" means an electric or gas utility or retail
8cooperative.
SB517,9,109
(e) "Electric or gas utility" means a public utility that generates, transmits,
10delivers or furnishes electricity or gas.
SB517,9,1211
(f) "Municipal utility" means an electric or gas utility that is owned or operated
12wholly by a municipality.
SB517,9,1313
(g) "Renewable resource" means any of the following: